President's Report

May 1, 2007

At the Bank

Federal Home Loan Bank of New York Declares a 7.50% Dividend for the First Quarter of 2007

I am pleased to report that our Board of Directors approved a dividend for the first quarter of 2007 at a rate of 7.50% (annualized). The Federal Home Loan Bank of New York’s (Home Loan Bank) dividend rate for the fourth quarter of 2006 was 7.00%. The dollar amount of the first quarter dividend was approximately $67 million. The cash dividend was distributed to members on April 30, 2007.

The dividend reflects the New York Home Loan Bank’s low-risk profile and conservative investment strategy. It represents a payout of approximately 95% of net income for the quarter. Retained earnings as of March 31, 2007, after the dividend payment, will be approximately $308 million. The Home Loan Bank plans to maintain retained earnings at a level to ensure future regulatory compliance and to provide additional protection for the capital of our stockholders.

I am also pleased to announce that the Home Loan Bank complied with Section 404 of the Sarbanes-Oxley Act two years ahead of the requirement. PricewaterhouseCoopers, the independent auditor of the Home Loan Bank, has issued unqualified opinions on both management’s assessment and on the effectiveness of internal control over financial reporting as of December 31, 2006. As an SEC registrant, additional financial and other disclosures may be found on the SEC website at http://www.sec.gov/edgar/searchedgar/webusers.htm.

Advances Averaged $58.8 Billion

For the month of March, advances averaged $58.8 billion. This is a $200 million increase from February. We ended the month at $59.0 billion. I am pleased to report the Board of Directors approved an additional change to the Home Loan Bank’s prepayment policy that could lower the fee associated with the prepayment of Convertible Advances. Effective May 1, the prepayment fee will be reduced when the Convertible Advance is immediately replaced by a new Convertible Advance.

A more detailed letter describing the new prepayment policy will be sent to you this week. For questions on the change of the prepayment fee, please contact Adam Goldstein, Vice President and Director of Marketing and Sales, at (212) 441-6703.

FHFB Appoints Four Public Interest Directors to the FHLBNY

The Federal Housing Finance Board (FHFB) has appointed four outstanding business professionals to serve on our Board. They are: Michael M. Horn, Partner, McCarter & English; Joseph J. Melone, Retired President and CEO of AXA Financial, Inc.; C. Cathleen Raffaeli, President and Managing Director of The Hamilton White Group; and Edwin C. Reed, Chief Financial Officer at the Greater Allen Cathedral of New York. With these appointments, the Board has its full complement of 17 members: 11 elected directors and six appointed directors.

As Home Loan Bank Chairman George Engelke said, “We are delighted with these appointments. These are highly skilled, seasoned individuals who know community banking and understand its complexity and importance.”

I would like to commend Ron Hermance, Chairman of the Board’s Corporate Governance Committee, for his exceptional leadership and commitment to identify and recruit the exceptional candidates which were submitted for approval to the FHFB. Four public interest directors were selected under a new process approved by the FHFB in January of this year in which the local Home Loan Banks nominate the public interest directors and the FHFB approves the directors. This innovative procedure further strengthens the strong public/private partnership and helps to keep the Home Loan Bank focused on our mission of advancing housing opportunity and local community development by maximizing the capacity of its community-based member lenders to serve their markets.

We value your loyalty to the Home Loan Bank, and we respect your commitment to your customers. We are profoundly grateful for the opportunity to serve you.

 

Sincerely,
Alfred A. DelliBovi
President & CEO


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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations of these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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